






















(■ 


81 



V BOARD OR ECONOMIC WARFARE, 




FATS AND OILS 


Immediate Steps Necessary to Avert 
United Nations Shortage 


February 26, 194-2 





























* 




























































ACTION NEEDED 


¥ 



fats be restricted at once in specified ways and for specified 


purposes : 

(1) Prohibit use of coconut, babassu nut, and palm kernel 
oils except where full recovery of glycerine will be made. 

(2) Prohibit use of palm oil, except for tin or terne plate, 
until a reserve of 60 million lbs. has been established 
for tin or terne plate. 

(3) Require soap manufacturers to recover maximum possible 
amount of glycerine. 

(4) Secure for the United States the Brazilian output of 
babassu nuts and maximize production thereof. 

(5) Promptly import copra from areas still accessible and 
maximize production thereof. (Sec pp. 15-17) 

B. To meet shortages and prevent further shortages, it is recommended 

that prompt consideration be riven to a number of specific suggestions 

CD 

(2) 

(3) 

(4) 

(5) 

( 6 ) 

(7) 

(3) 


Re-examine use of glycerine and restrict to essentials. 

Utilize immediately stored English and Norwegian 
holdings of whale oil. 

Determine extent to which production of synthetic 
glycerine can bo increased. 

Determine whether use of soy bean and fish oils 
should be restricted. 

To conserve shipping, determine extent of imports 
from Britain containing fats and oils. 

With respect to palm oil and kernels, determine 
extent to which the British are recovering glycerine 
from West African imports and are using such imports 
for margarine« whether the British are taking all of 
the available supply; whether oil tankers are avail¬ 
able to bring oils to the United States from Africa 
on return trips. 


Consider Argentine surplus supply of flaxseed in 
relation to United States shortage of fats and oils. 

Consider relaxing duties and excise taxes on imported 
fats and oils. (See pp. la-22) 






























■ 








, 

. 
















. 








. 










. 







































- 

























. 























, 








. 



















But with some 26 units of government agencies now dealing with 
fats and oils, there is no effective means of carrying out the 
above and other recommendations and suggestions. Instead there 
are delays, duplication, contradictory actions, and a lack of 
an over-all program. Therefore: 


C. It is recommended that authority to make decisions to 
meet the fats and oils shortage be placed in one 
individual within the War Production Board. 


Such individual would have authority: 

(1) To obtain joint decisions from the most 
interested cooperating agencies and—in case 
of deadlocks—to make decisions himself. 

(2) Once decisions have been reached—either 
jointly or by himself—to delegate respon¬ 
sibility to specified agencies for getting 
specified action. 

(3) To see to it, through a consulting staff of 
six representatives to be drawn from only the 
most important of the agencies interested in 
fats and oils, that action of all interested 
agencies was consistent and in accordance with 
decisions once made, (See pp. 13-14) 


















SUMMARY OUTLINE OP CONTENTS 


Pages 

I. WHY THE FATS AND OILS SURVEY WAS MADE. 1-2 

(it is of critical importance to procure adequate 
supplies of fats and oils,) 

II. SUMMARY OF THE INTERNATIONAL FATS AND OILS SITUATION. 3-6 

1. Allied home production of fats and oils will be 

4«4 billion -pounds below 1942 needs. 


(a) Other countries require 1 billion pounds from 

the U.S. ' 3 

(b) To meet the requirement of other countries and 

U.S. domestic demand we must import 2 billion lbs. 4 

(c) Problems of collection and shipment may reduce 

imports. 3 

(a) Even with planned imports from the U.S., the 

United Kingdom and Canada still need 2.4 billion 
pounds from non-U*S. sources. 5 

(e) War developments may make United Kingdom, Canada, 

and Russian demands on U.S. greater. 3 


2. United States produc ti on of fats and oils will have 

to be increased in 1942 " ! (Appendix A, Part 2) 

(a) How acreage and production of soybeans, flaxseed, 
castor beans, peanuts, could be increased. 

(b) Production of lard, tallow, and greases can be 
increased by changes in price relationships to meat. 

(c) Production of corn oil, by-product oils, can be 
increased. 

(d) To achieve increases price ceilings may need to be 
raised. 

(e) Restrictions and rationing may need to be imposed. 


III. WHAT THE GOVERNMENT HAS DONE, AND NOW NEEDS TO DO TO MEET 

THE SHORTAGE. ' 7-14 

1. Governm ent agencies and subag en cies are now inde¬ 
penden tly _taking ma ny st eps v ri oh respect to fats 
and oil s„ 

These include? 

(a) Ascertaining requir emen ts. It is necessary to 
consider substitutions of one fat or oil for 
anctner, and to think in terms of end products 
and by-products; also, there must be detailed 
knowledge of the situation in each country and 

of the availability of shipping space. 7 

(b) Ascer taining domes tic production . This know¬ 

ledge makes possible the promotion of further 
production. 7 

(c) Ascertaining foreign supplies . Fats and oils 

we need are available abroad; others can be 
produced abroad. These should be obtained by 
negotiation or otherwise only as part of an 
integrated program, 7 
























SUMMARY OUTLINE OF CONTENTS *2- 


2. But too many government agencies are in the field , 

duplicating, working at cross purposes . 

(a) Work on fats and oils is being done by at least 
S units in the Department of Agriculture; 3 units 
in the Department of Commerce; 12 in the War Pro¬ 
duction Board; as well as in the Department of 
the Interior, the Board of Economic Warfare, the 
Tariff Commission, the Office of Price Administra¬ 
tion, the Lend-Lease Administration and the 
Defense Supplies Corporation. 

3. There is no over-all government program, no coordina ¬ 

tion of activities . 

(a) Why an over-all program is needed . Every estimate, 
judgment or decision by one official affects nearly 
all others dealing with fats and oils matters 
because in industry one fat or oil can often be sub' 
stituted for another; because the requirements of 
one country depend upon other countries (for example, 
if the United Kingdom needs more, U.S. production 
has to be more, or consumption less); because 
foreign requirements depend on supplies abroad and 

the success or failure to increase those supplies, etc. 11 

(b) Present obstacles to an over-all program include ; 

Scattered responsibilities, duplication of effort, 
working at cross purposes, action by one in igno¬ 
rance of action by others. 11 

(c) Examples showing need for action to remedy present 

situation ; 

United Kingdom T s needs still undetermined. In Latin 
America several agencies have been acting independent¬ 
ly on the same problem. An order limiting fats and 
oils inventories had to be later amended because it 
was drawn up without sufficient preliminary consulta¬ 
tion. Negotiations with United Kingdom representa¬ 
tives on the same problem have been carried out 
simultaneously by different agencies on different 
levels. Though there is general agreement as to need 
to modify duties and taxes on imports, there is com¬ 
plete uncertainty as to which agency is to handle this 
problem. Maximum recovery of glycerine in soap making 
depends on the price paid for recovered glycerine; 
recovery and price are inseparable and have to be 
considered together. 11 - 


Pages 


8-10 


13 























SUMMARY OF OUTLINE OF CONTENTS ~3- 


Pages 

4. There is need to center authority in one individual . 

(a) The present confusion and lack of program can 
only be effectively met by centering in one 
individual the authority to get quick decision 
and action. Such an individual within the 
War Production Board, would be assisted by a 
compact consulting staff drawn from the most 
important agencies interested in oils and fats. 

He would have the necessary authority to get 
joint decisions and to break deadlocks; to 
delegate responsibilities to specified agencies; 
to see to it that the responsibilities are 
carried out in a manner consistent with an over¬ 
all program 13 - 14 

IV. DETAILED STATEMENT OF RECOMMENDATIONS AND SUGGESTIONS 

REQUIRING ACTION. 15-22 


APPENDIX A 

1. Tentative "Survey of The International Fats 
and Oils Situation" prepared by Mr. R. M. Walsh 
and Dr. T. Norman of the Department of Agri¬ 
culture, Fobrudry 5, 1942. 

(This survey, summarized in Part I 
above, contains text and tables 
showing in detail the 1942 require¬ 
ments of fats and oils for the U.S., 
United Kingdom, Canada, Latin America, 
and Russia.) 

2. "Production Goals For 1942: Crop Oils", pre¬ 

pared in the Department of Agriculture, 

January 9, 1942. 

(This memorandum states in detail re¬ 
commended increases and adjustments in 
U.S. production of fats and oils through 
expanded acreage, price charges, shifts 
in processing facilities, establishment 
of reserves, restriction in uses, and 
possible rationing measures.) 






I. WHY THE SURVEY WAS MADE 


* j 

The minutes of the January 20, 1942 meeting of the War Production 
Board reveal that "The Vice Fresident pointed out that Mr. Ivlilo 
Perkins, Executive Director of the Board of Economic Warfare, is re¬ 
viewing the export and import situation with respect to fats and oils 
and on his recommendation, the Chairman and Mr. Henderson undertook 
a similar review of the domestic supply and demand situation." 

Because of the availability of a tentative "Survey of the Inter- 

. o o 

na-tional Fats and Oils Situation" made in the Department of Agricul¬ 
ture, dated February 5, 194-2, no independent survey of the whole 
situation has been made by the Board of Economic Warfare. A copy of 
the Department of Agriculture's surve}^ and a copy of "Production 
Goals for 1942s Oil Crops" prepared January 9, 1942 in the Department 
of Agriculture, are attached hereto; together they constitute Appen¬ 
dix A. A revision of "Production Goals for 1942: Oil Crops" is now 
in progress. This revision, however, will make only minor changes. 
(There is also available a comprehensive collection of statistical 
material published by the U. S. Tariff Commission on December 15, 

194-1, entitled "Fats, Oils and Oil-Bearing Materials in the United 
States.") 


It is of critical importance that adequate supplies of fats and 
oils be procured. Tho problems relating to procuring needed imports 
and increasing production are inseparable from the problems relating 
to ascertaining requirements for domestic consumption, the substitu¬ 
ting of more plentiful for less plentiful fats and oils in domestic 
and foreign industry_ and the increasing of domestic production also 
cut across all the ether problems in the field of fats and oils. 
Hence, the Executive Director of the Board of Economic Warfare has 
had made a survey of govcrnmc-ntal activities having to do with all 
these problems. 

This surve^r covers tho functions which are being performed by 
Government and the present allocation of these functions among gov¬ 
ernmental agencies and agency subdivisions. The survey concludes 
that there arc many instances of duplication of activities by dif¬ 
ferent governmental agencies and agency subdivisions, that govern¬ 
mental action has often boon undertaken by one agency or agency 
subdivision in ignorance of action taken or relevant information 
possessed, by another agency or agency subdivision, and that there 
has been no over-all program and no definite allocation or respon¬ 
sibility for the effectuation of particular functions or projects. 

On the basis of these conclusions, and to get quick decision 
and action on important fats and oils problems, a recommendation 
has been made that responsibility should be centered in one indiv¬ 
idual within the War Production Board, who would be assisted by a 
compact consulting staff drawn from the most important interested 
agencies. A definite allocation of responsibility is imperative. 


The study made at the direction of the Executive Director of 
the Board of Economic Warfare was designed to indicate what specific 
lines of governmental action should be pursued and what particular 
projects should be undertaken at the present tine. The program out¬ 
lined below was formulated after consultation with the experts and 
others concerned with fats and oils in the Departments of Agriculture 
and Commerce, the War Production Board, the Board of Economic War¬ 
fare, the‘Tariff Commission and the Office of Price Administration. 


I.lany of the proposals deal with the domestic scene. They are 

of view of the Board, of Economic Warfare, 


point 


important, from the 

because if put into effect they will lessen the need for procuring 
import's of supplies available abroad and lessen the need for projects 
-to increase production abroad. 


Certain proposals are specific and concrete. With respect to 
the larger number of these proposals, there is agreement among all 
the experts and others who were consulted. Some of.the proposals 
arc more general and need to be translated into concrete action 
projects. Concerning some of the general proposals and a few of the 
specific, concrete proposals, there were differences of opinion among 
the persons consulted. 


The indicated need for resolving these differences of opinion 
and for translating the general proposals into concrete action proj¬ 
ects emphasizes the indispensability of centering responsibility on 
one individual assisted by a consulting staff. But the specific, 
concrete proposals made below should be put into effect immediatelyj 
their adoption and effectuation should not await steps to center 
responsibility and obtailn action with respect to the whole problem. 


- 3 *- 


II. SUMMARY OF THE INTERNATIONAL FATS AND OILS SITUATION 

The accompanying balance sheet shows the approximate position 
of the United States, United Kingdom, and Canada with regard to re¬ 
quirements for and supplies of fats and oils in the calendar year 
1942. Total requirements for the three countries, including some 
300 million pounds of fats and oils for shipment to the Soviet Union, 
amount to about 15.5 billion pounds. Home production is estimated 
at 11.1 billion pounds. Approximately 4.4 billion pounds will need 
to be imported from surplus-producing areas. The supply of raw 
materials in surplus areas accessible to United Nations shipping is 
in excess of 5 billion pounds in terms of oil (excluding the 
Netherland Indies), but problems of collection and shipment probably 
will mal:e it impossible to bring in the total imports needed, par¬ 
ticularly in the case of the United States. 

Fats and Oils Balance Sheet for the United States, 

United Kingdom, and Canada, 1942 


Item 


Quant itjr 


Requirements 

: Billion pounds 


United States; 




Domestic Consumption 


11.3 


Export to United Kingdom 


.5 


Export to U.S.S.R. 


.3 


Export to Latin America 


.2 


Total, United States 


12.3 


United Kingdom 


2.8 


Canada 


.9 


Total, 3 countries 


16.0 


Total, excluding duplication 


15.5 


Home Production 




United States 


10.3 


United Kingdom 

a/ 

.3 

* 

Canada 


.5 


Total 


11.1 


Imports needed / 




United States 


2.0 


United Kingdom (excluding imports from 




United States) 


2.0 


Canada 


.4 


Total 


4.4 

• 


Canadian figures are tentative estimates 

1/ Includes withdrawals from stock of nearly 0.3 billion pounds of 


whalo oil. 

















- 4 - 


UNITED STATES REQUIREMENTS 

Consumption of fats and oils in the United States during 1942 
is estimated at 11.3 billion pounds compared with 11 billions in 
1941. Another 1 billion pounds will be required for export thereby 
raising the estimated total requirements to 12.3 billion pounds. 

It is expected that total production from domestic materials 
will approach 10.3 billion pounds. However, since it fs considered- 
essential that stocks must not be allowed to fall below the January 
1st level, at least 2 billion pounds, in terms of oil, of fats, oils 
and oil seeds will have to be imported in 1942-. While this quantity 
is potentially available it is extremely doubtful that actual imports 
will reach this level. 

The amounts of particular fats and oils to be imported, in terms 
of oil equivalent, are as follows; 


Fats and oils 
Oil equivalent 


Million 

pounds 


Imoorts 


Tallow 
Whale oil 
Cashew shell oil 
Castor beans 
Coconut oil 
“-Copra 

Cottonseed oil 
Flaxseed 
Oiticica oil 
*Palm kernels 

Babassu and other palm kernels 
*Palm oil 
Rape oil 
Tung oil 


135 

20 

2 

225 

135 

535 

50 

380 

30 

20 

75 

300 

15 

30 


Total imported Material 


-“-These supplies should doubtless 








5 - 


UNITED KINGDOM REQUIREMENTS . ' ' 

The British Ministry of Food estimates that a' total of approxi¬ 
mately 2,850 million pounds (oil equivalent) of oils and fats will 
be consumed in Great Britain in 1942. Of this total it is expected 
that approximately 300 million pounds will be supplied by drawing on 
stocks now held in the United Kingdom and the United States, chiefly 
whale oil. By far the largest part, or some 2,500 million pounds, 
will have to be imported. The chief items to be imported in terms 
of oil equivalent are as follows i 


000 pounds 


Palm kernels 
(including copra) 

500.976 

Palm oil 

504,000 

Peanuts 

/DO,000 

Linseed 

212,150 

Butter 

358,400 

Lard 

349,440 

Others 

187,712 

Total 

2,512,678 


As can be seen in the above table, it is estimated that the 
United States will supply only 350 million pounds of lard. There 
is a strong feeling, however, that arrivals in the United Kingdom 
of the various fats and oils will not measure up to expectations 
during 1942 and the United States may find itself faced with the 
possibility of having to supply an additional 112 million pounds of 
lard. 


Since the United Kingdom is so dependent on foreign sources for 
these commodities her position with respect to them cannot be con¬ 
sidered favorable in the light of present conditions. Any inter¬ 
ruption in shipments between the United Kingdom and Australasia, 
India or Africa would inevitably result in still greater demands 
being made on the United States and South America in an attempt to 
provide substitutes. 


CANADIAN REQUIREMENTS 

Canadian requirements are estimated at approximately 900 million 
pounds on the basis of past experience and on the size of the Canadian 
population. Canadian imports in 1941 were approximately 400 million 
pounds in terms of oil, and import requirements for 1942 have been 




estimated at this figure. Domestic production is assumed to be 500 
million pounds. All our calculations in respect to Canada are 
extremely tentative, but we expect shortly to receive a report from 
Ottawa giving more definite information. 

RUSSIAN REQUIREMENTS 

On the basis of the scanty information available it appears that 
the deficiency in Russian fats and oils supply is at least 500 million 
pounds and possibly much larger. Recently the Russian Government re¬ 
quested shipments totaling over 300 million pounds for six months. It 
is believed, however, that total shipments during the entire year will 
not exceed. 300 million pounds. This is estimated on the basis of 
current shipping. Should more shipping bo available this quantity may 
be increased. 


- 7 - 




ill. WHAT THE GOVERNMENT HAS DONE, AND NOW NEEDS TO DO,TO 1.1 
THE SHORTAGE 


1. The Functions Now Leina Performed by Governmental 
Agencies and Subagencies , 

(a) Ascertaining Recuirenents . The determination of re¬ 
quirements is complicated by the large number of different fats 
and oils and by the fact that, vdthin limits substitution of one 
fat or oil for another is possible. Such substitution may be 
desirable because of shortages of particular fats or oils or 
because a particular use of a particular fat or oil may yield 
more of a needed by-product (e.g., glycerine) than a different 
use. Requirements must be ascertained not only in terms of 

fats and oils, but also in terms of fat and oil bearing materials 
and in terms of end products and by-products (e.g., glycerine, 
cattle-feed cake and fertiliser meal). 

The ascertainment of the requirements of the United Kingdom, 
the U. S. S. R., Latin America and other countries for exports 
from the United States, in view of the possibility of substitu¬ 
tions, necessitates procuring detailed pictures of the fats and 
oils situation in each of these countries. The availability of 
shipping space for exports must be taken into account. 

(b) Ascertaining Domestic Production and Deciding to Pro ¬ 
mote Increased Produc ti on of Particular Fats and Oils . Even when 
probable production (absent governmental stimulation) has been 
estimated, decisions can be reached with respect to the promotion 
of increased production of particular fats and oils only after 
study of estimates of requirements, estimates of former foreign 
supplies no longer available, and estimates of new foreign 
supplies available or capable of being made available. 

(c) Ascertaining Foreign Sune l ics Available and Capab le ’ 
of Being Made Available . Information must be obtained, decisions 
made, and action taken to secure for importation said to import 
into the United States supplies of fats and oils available and 
capable of being made available abroad. 

There arc now available abroad supplies of fats and oils 
neoded in the United States. Procuring and importing them into 
the United States frequently involves procuring information and 
making decisions not only as to their existence but also as to 
price and competitive buying for other countries. Sometimes 
negotiations must be carried on with foreign governments which 
control available supplies, or are purchasing them, or whose 
nationals arc purchasing them.- Sometimes foreign governments 














-O — 


must be induced, to release to the United States supplies which 
those governments are importing and to accept in their stead 
supplies of other fats and oils of which the United States has 
available surpluses. Decisions and activities with respect to 
all these matters 'are dependent upon decisions'with respect to 
financial arrangements, purchases by governmental agencies, 
etc. 

Projects for the increasing of the production of particu¬ 
lar fats and oils abroad also require decisions based upon 
study of requirements and available supply and involve the 
making of financial arrangements, the creation and operation 
of procuring or producing units, or both. 

Shipping space problems are involved in the securing of 
available foreign supplies, the increase thereof, and the ex¬ 
portation of substitute oils and fats to induce release for 
importation into this country of other fats and oils. 

In addition to the diplomatic problems the existence of 
v/hich has been implied in what has already been said, there 
are other diplomatic problems. 

2. The Present Allocation of Gover n mental Functions . 

The principal governmental agencies concerned with fats 
and oils are the Department of Agriculture, the Department of 
Commerce, the Department of the Interior, the Tariff Commission, 
the Board of Economic Warfare, the .War Production Board, the 
Office of Price Administration, the Lend-Lease Administration, 
the Reconstruction Finance Corporation, and the Defense Supplies 
Corporation. 

The subagencies in the D epartment of Agriculture concerned 
with fats and oils arc those represented on the Department 1 s 
Interbureau Coordinating Committee on Fats and Oils: (l) Agri¬ 
cultural Adjustment Administration; (2) Surplus -Marketing 
Administration 5 (3) Office of Foreign Agricultural Relations; 

(4) Commodity Credit Corporation| (5) Office of Agricultural 
Defense Relations; ( 6 ) Bureau of Agricultural Chemistry and 
Engineering; and (7) Bureau of Plant Industry. The chairman 
(Dr. F. F. Elliott) and the Secretary of the Committee arc 
from (S) the Bureau of Agricultural Economics. The function 
these agencies perform with respect to fats and oils is sug¬ 
gested by their names. Robert M. Walsh, Secretary-of this 
Interbureau Coordinating Committee, is fats and oils 
specialist of the Department of Agriculture. Dr. Theodore 
Norman of the Surplus Commodities Corporation is concerned 
with purchases of fats and oils for Lend-Lease. 







In the Department of Commerce , the fats and oils specialist 
is Charles Limd of the Bureau, of foreign and Domestic Commerce. 

Mr. Lund unites a monthly confidential report on fats and oils 
which is distributed to a limited number of governmental officials 
and also an annual report on fats and oils. T. P. Lee of the 
Bureau of the Census is concerned, among other things, with fats 
and oils, as is E. F. Hickson of the National Bureau of Standards. 


In the Department of the Inte rior, the Fish and Wildlife 
Survey is concerned with fish oil. 

In the Tariff Com m ission , Dr. Ben Dorfman is concerned 
with the economic and industrial aspects of fats and oils. Rodlin 
Cragg is the expert on the chemistry of fats and oils. 


The Beard of Econ omic *7 arfare* s geographical divisions and 
its export control and imports and shipping divisions are con- 
cerned with the foreign aspects of the fats and oils situation. 
For example, the Projects and Development Section of the 
American Hemisphere Division sends men into Latin America to 
promote the increase of supplies dor exportation to this country. 
The Interdepartmental Foreign Requirements Committee and the 
Policy Committee, which reviev/s the I. F. R. C.’s recommendations, 
are concerned with the requirements of the United Kingdom, Russia, 
Latin America and other foreign countries for fats and oils (as 
well as for all other commodities*) 


In the War Production Boa rd, there are several subdivisions 
interested in various aspects of the fats and oils situation. In 
the Materials Division there is a Chemicals and Allied Products 
Branch; in this Branch, there is an Edible Oils Section (concerned 
with-edible end-products) headed by J. G. Parry and a Protective 
and To clinical Coatings Section headed by J. B. Davis; in the latter 
section arc the Oils and Fats Unit (T. A. Barber), the Soaps and 
Glycerine Unit (George Wrislcy), and another unit (Mr. Coburn) 
which is concerned (among other things) with cashew nut oil and 
sperm oil. Each unit head convenes from time to time industry 
advisory committees composed of representatives of various 
interests in the particular industry; for example, on February 5, 
1942, George Urislcy, chief of the Soaps and Glycerine. Unit, pre¬ 
sided over a mooting of the Soap and Glycerine Industry Advisory 
Committee. 

In the Division of Operations in the Far Production Board, 
there is a Food Section (Townson), in which, it is said, a fats 
and oils specialist will be appointed. 

In the division of Civilian Supply of the War Production 
Board, four units have been set up: (1) the Food Unit (Sidney 
Gubin); (2) the Chemical Unit; (3) the Agricultural Unit (Tuckcrman) 









- 10 - 


and (4) the Supply and Requirements Units (Chapman). The Food 
Unit is concerned with processed fats and oils such as lard, 
shortening, butter, etc. The Chemical Unit is concerned with 
fats and oils going into paints, varnishes, etc. The Agricultural 
Unit is concerned with all unprocessed oils which do not fall with¬ 
in the domains of the Food and Chemical Units. The Supply and 
Requirements Unit, now being sot .up, docs not seem to have con¬ 
cerned itself, as yet, with the fats and oils situation, and there 
is considerable uncertainty as to what will be its function. 

In the VJar Production Beard, proceedings looking toward the 
issuance of a formal order with respect to fats and oils (or any 
other commodity) are initiated by the commodity unit; the pro¬ 
posed order is transmitted from the commodity unit through the 
section head and the branch head; it is submitted to the Civilian 
Supply Division and;Labor Division; it is cleared through the 
Legal Division; it eventually reaches the Clearance Committee; 
it is finally adopted by the War Production Board. Formal orders, 
after issuance, are administered by the Division of Industrial 
Operations. 

The War Production Board's Offshore Import Priorities 
Advisory Committee recommends import quotas to the Maritime 
Commission. The committee is advised by the commodity units 
and consults experts in other departments of the Government; 
for example, with respect to import quotas for fats and oils, 
a representative of the committee consulted with Charles Lund 
of the Department of Commerce. 

In the Office of Price Administration . the Price Division 
has a Chemical Section in which there is a Protective Coatings 
Unit. This unit is headed by Mr. Goldberg. This unit is charged 
with controlling inflation with respect to soaps and glycerine. 
Other fats and oils (the larger number) are handled by Victor Lea. 

The Lend-Lease Administration receives requests for aid from 
Lend’-Lease countries and determines the amount and nature of aid 
to be rendered. It then allocates funds to procuring agencies 
(War Department, Navy Department, Treasury Department, Department 
of Agriculture and Maritime Commission) for procurement of desig¬ 
nated goods and services. It authorizes the procuring agencies 
to transfer completed goods to Lend-Lease countries. 

The Defense Supplies Corporation purchases and sometimes 
stockpiles fats and oils with funds supplied by the Reconstruction 
Finance Corporation . 







- 11 - 


3. Lack of Over-all Program and of Coordination of. Activities 

Nearly every estimate, judgment, and decision made by any 
governmental official in a matter involving some one fat or oil 
affects nearly every other estimate, judgment or decision with 
respect to other fats and oils mattersi This is true because, 
within limits, one fat or oil can be substituted, in industry, 
for another; because the need for cutting down domestic consump¬ 
tion depends in large part upon the requirements of the United 
Kingdom, the U. S. S. R., and Latin America for exports from the 
United States; because the extent to which foreign requirements 
can be met depends not only upon domestic production but also 
upon the availability of supplies abroad and upon the possibility 
of (and upon the success of efforts aimed toward) increasing 
available supplies abroad, etc. 

For these reasons it is obviously imperative that there be 
a definite allocation of functions among the many agencies and 
subagencies working in the field of fats and oils; that there 
be no duplication of activities by different governmental agen¬ 
cies; that no governmental, agency take action in ignorance of 
action taken or relevant information possessed by another agency; 
and that there be an overall program covering all fats and oils 
problems arrived at after full consideration of all information 
available anywhere * 

At the present time there is no such overall program and 
no such coordination of information and activities. A few ex¬ 
amples : 

(i) As has been shorn, information with respect to the 
whole fats and oils situation in the United Kingdom is essen- 
tial before an intelligent decision can be reached on the ques¬ 
tion whether or not the United Kingdom*s request for fats and 
oils should be complied with in full. Until this question is 
definitely settled, final decisions cannot be reached on the 
extent to which domestic consumption should be restricted and 
substitutions in use required, on the extent to which domes¬ 
tic production should be increased, on the extent to which 
available supplies abroad should be acquired, and on the extent 
to which supplies abroad should be increased. Yet, during the 
past few months, different agencies and agency subdivisions have 
received conflicting information from different representatives 
of the British v/ith respect to the fats and oils situation in 
the United Kingdom. 

(ii) During the past few months, there has been much work 
done in the Board of Economic Warfare looking toward the de¬ 
velopment of increased supplies of fats and oil-bearing materials 



- 12 - 


in Latin America; for example, babassu nuts in Brazil. The 
commodity men 'in'the War Production'Board"have also been work¬ 
ing independently on this problem. Conversations with diplomat¬ 
ic representatives of Latin American countries, with officials 
of the State Department and. with officials of the Defense 
Supplies Corporation have been held independently and without 
coordination of policies both by Board of Economic Warfare 
people and by War Production Board people. 

(iii) In the War Production Board, the subdividing of fats 
and oils activities among several units in different branches 
and in different divisions seems to have resulted in uncoordi¬ 
nated activities. For example, an order limiting inventories 

of fats and oils has had to be amended because those who drew 
it up in the first place had not procured information with 
respect to the industry which was available in other government¬ 
al agencies and subagencies. There seem to have been instances 
of insufficient consultation by one War Production Board sub¬ 
division with other War Production Board subdivisions before 
action was taken. 

(iv) The British control the supply of palm kernels in 
West Africa. They import into the United Kingdom an amount 
thereof less than the amount which would be available if a 
higher price were paid for kernels. It is believed that a 
large part of the kernels imported into the United Kingdom is 
there used for edible purposes — in margarine. Several 
different agencies of the United States Government have been 
attempting independently to discover whether the British can 
be induced to let this country have the palm kernels, so that 
their high glycerine content can be recovered, the British 
accepting in lieu thereof edible fats or oils of which this 
country has exportable surpluses. Negotiations with repre¬ 
sentatives of the United Kingdom have been conducted by one 
or more of our governmental agencies in ignorance of the 
fact that others of our governmental agencies have been con¬ 
ducting negotiations with other British representatives on a 
higher level. 

(v) There are import duties and excises on the larger 
number- of the fats and oils. There seems to be general agree¬ 
ment among those concerned with fats and oils that these taxes 
militate against our getting so much as we. should get of the 
supplies of fats and oils available and capable of being made 
available abroad. A number of agency subdivisions have ex¬ 
pressed concern with this problem. ’The Board of Economic 
Warfare has drafted and started toward enactment a bill to 
suspend the excise on non-Philippine copra and"coconut oil. 


- 13 - 


But there is complete ■uncertainty as to whose function it is 
to; attack the problem as a whole. 

(vi) It is imperative that soapers recover a maximum 
amount of glycerine. Small soapers cannot recover as large a 
proportion of the glycerine content of fats and oils as can 
large soapers, without incurring much greater costs per pound 
of glycerine than those incurred by the large soapers. In a 
meeting of the Soap and Glycerine Industries Advisory Committee 
on February 5, 1942, presided over by George Urisley, Chief of 
the Soaps and Glycerine Unit in the Uar Production Board, it 
was brought out that the determination of what proportion of 
glycerine small soapers should be required to recover depended 
upon the price the Office of Price Administration would author¬ 
ize to be paid for their glycerine recoveries. Mr. Urisley 
felt compelled to say that the UPB advisory committee could not 
settle the'two inseparable problems; the price problem was being 
handled independently by the Office of Price Administration. 

4. Recommendation That Authority to Allocate Functions and 
Direct Activities be Centered in One Individual 

It is imperative that responsibility for action with respect 
to fats and oils no longer be scattered among as many as twenty- 
six bureaus and divisions in nine departments or agencies. The 
experience, information and facilities of all interested agencies 
need to be brought together in common endeavor. A way is needed 
to obtain prompt disposition of important undecided questions, as 
well as to eliminate inadequate, self-defeating or contradictory 
actions. Seasonal and other factors will increase the losses 
and wastes and greatly lengthen the delay in making up oil and 
fat shortages if effective action is too long postponed. 

It is therefore recommended that responsibility be centered 
in one individual, within the Uar Production Board, who would be 
assisted by a compact consulting staff of six representatives 
dram from the most important of the interested agencies. Such 
an individual would have authority to obtain joint decisions from 
the agencies concerned and— in case of deadlocks— to make de¬ 
cisions himself. Once decisions have been reached, ho would have 
the authority to delegate responsibility to specified agencies 
for getting specified action. It would be his responsibility to 
see to it, through the consulting staff, that action of all 
interested agencies was consistent and in accordance with de¬ 
cisions once made. 

A staff larger than six would be impracticable as an operating 
unit. However, for the first month or two, it would probably be 
wise for periodic meetings to be held at which the many government¬ 
al officials in the newer agencies, v r ho are charged with taking 





- 14 - 


actions with respect to problems in the field of fats and oils, 
would meet together to discuss their common problems. Such meet¬ 
ings would be equally valuable in bringing these officials to¬ 
gether with the technical experts in fats and oils in tho older 
governmental departments. 

The consulting staff would be drawn from responsible repre¬ 
sentatives of (l) the sections and units concerned uith fats and 
oils in the Uar Production Board’s Divisions of Materials, Civilian 
Supply, and Operations; (2) tho intorburbau Coordinating Committee 
for Fats and Oils of the Department of Agriculture; (3) the Office 
of Price Administration’s units concerned uith fats and oils; (4) 
the sub-divisions of the Board of Economic Warfare which, as part 
of tho Board’s concern uith stepping up production abroad, have to 
do uith action programs in foreign countries; (5) the fats and oils 
specialist of the Department of Commerce; (6) tfee fats and oils 
specialist of the Department of Agriculture, 

Other agencies, of course, would have to be called on for 
information and assistance on specific problems. From time to 
time assistance would be needed from the State and Interior De¬ 
partments, the Federal Loan Agency, the-Lend-Lease Administration, 
the Maritime Commission, and the Tariff Commission, and from 
Agriculture Department sub-divisions. 

An individual with centralized authority, and through his 
operating staff, would be able to coordinate the programs and 
activities relating to fats and oils of the sections and units 
of the several divisions of the War Production Board, Duplica¬ 
tion of activities could be eliminated, while coordinated efforts 
could be secured,on the part of the War Production Board, the 
Office of Price Administration, the Board of Economic Warfare, 
and the Department of Agriculture, 


- 15 - 


IV. RE C 0 MME ND AT IONS AND SUGGESTIONS FOR ACTION* 

Action is needed to establish centralized authority and an over¬ 
all program for fats and oils. But the following specific recommen¬ 
dations for immediate action should be put into effect immediately 
and without auaiting disposition of the whole problem. 

1• Spe cifi c recommendations for i mmediate action: 


A. Domestic: 

*(1) Prohibit the -use of coconut oil and babassu nut oil and 
other species of palm kernel oils in the manufacture of 
products other than those from which full recovery of 
glycerine will be made. 

*(2) Prohibit the use of palm oil in the manufacture of any 
products, except tin or terne plate, until 60 million 
lbs, has been reserved for the manufacture of tin or 
terne plate. 1/ 


* - The recommendations and suggestions marked with an asterisk came 
out of an informal meeting held on February 16, 1942, and attend 
ed by the following: 

Louis Bean, British Empire Div., BEW 
John Ritchie, General Counsel’s Offlee,BEW 
George Masselman, Far Eastern Div., BEW 
Charles Lund, Bur. of For.& Dorn. Coironerce 
T. A. Barber, War Production Board 
G.A. Wrisley, Soap £. Glycerine Unit, WPB 

A. W, Phillips, WPB 

1/ Mr. Wrisley, Head of the Soap and Glycerine Unit of the WPB, 
states that a forthcoming Order of the WPB will provide: 

"Every person who, on the inventory date (which will be sometime 
within the next week) has an inventory in the aggregate of 30,000 
lbs,, by weight of oil or oil content, of these high lauric acid 
oils, shall set aside his inventory quota of 2G% of the total and 
shall continue to hold such quota subject to the direction of the 
Director of Industry Operations. The quotas of all such users shall 
provide the source for the allocation of high lauric acid oils to 
the extent that the Director of Industry Operations may determine 
that such substitutes- for such oils cannot be found, and that the 
use of such oils is indispensable and essential for defense pur¬ 
poses, and such quotas shall also constitute a reserve supply of 
such oils," 


Sidney Gubin, WPB 

R.H. Cragg, U.S.Tariff Col 
Ben Dorfman,U.S.Tariff Con 
James G. Parry, WPB 
John F. Coburn, WPB 







- - 16 - 


*(3) Require soap manufacturers to recover the maximum possible 
amount of glycerine in their use of fats and oils. 2/ 


B. Foreign : 

(l) Secure for this country the Brasilian output of babassu 
nuts, and press to completion the efforts now being made 
by agencies of the U. S, Government to maximize the pro¬ 
duction of babassu nuts in Brasil. 3/ 


2/ We should ascertain the amount of soap that will be produced in 
meeting minimum glycerine requirements ; we should then ascertain the 
relationship between this amount and our minimum soap requirements; 
if these inquiries disclose that the amount of soap produced in sat¬ 
isfying our minimum glycerine requirements will exceed our minimum 
soap requirements, provision should be made for storing either fatty 
acids or soap itself, provided it is feasible to do either, to the 
end that when, after the v;ar, our glycerine requirements arc sharply 
reduced, it will not be necessary to continue to import substantial 
quantities of fats and oils in order to meet our soap requirements, 

2/ Babassu kernels are on the free list in the Brazilian Trade 
Agreement, Up until this year, we have received practically all of 
the Brazilian babassu oil; recently, Colombia, Venezuela, other South 
American countries and Mexico have been taking substantial quantities 
of babassu at a price over our ceiling of llg$ crude, tanks, New York, 
It is thought that these countries are now buying up babassu for 
edible purposes to replace the edible oils they formerly obtained 
from the Far East. Also, by reason of our price ceiling, it seems 
probable that unless something -is done to alleviate the situation, 
they will continue to outbid us on the babassu they -require, up to 
a point where they can replace these oils with other oils selling for 
less than babassu. It seems, however, that we could secure the Bra¬ 
zilian babassu output by either (l) purchasing the entire crop, or 
(2) having some United States agency quote American fat products at 
prices competitive to babassu. 

Dr. Bressman, of the American Hemisphere Division, has sent- Mr. 
Vernon Wright, an expert on babassu,to Brazil in the interest of 
securing the Brazilian supply of babassu and maximizing its produc¬ 
tion. Mr. Atherton Lee of the American Hemisphere Division and Mr, 
Reynolds, an assistant to Mr, Rosenthal, will leave shortly for 
Mexico and Central America in the interest of encouraging the plant¬ 
ing of strategic crops, including vegetable oils. Also Mr. Lund, of 
the Bureau of Foreign and Domestic Commerce, expects to visit Brazil 
in the near future,covering the entire country, in the interest of 
increasing our imports from Brasil of all fats and oils. 





2. Suggestions requiring coordinated consideration before 

being translated into action; 


A. Domestic : 

*-(l) The present uses of glycerine should-be re-examined to the 
end of restricting the uses of glycerine to essential pur¬ 
poses, 

*(2) Consideration should be given to utilizing,, at the earliest 
possible time, the English and Norwegian holdings of whale 
oil stored in the Western Hemisphere, particularly the major 
portion thereof which is stored in the United States, such 
oil to be utilized by either the United States or England, 
as appears most feasible taking into consideration prices, 
shipping facilities, and other relevant factors, 1/ 

(3) Further investigation should be made of the extent to which 
the production of synthetic glycerine can bo increased. 


1/ Mr. Parry, Chief of the Edible Oils Section of the WPS, brought 
out the following points: 

n TTie English whale oil arrived right after the outbreak of the 
war. 123,330,493 pounds is held by the British Food Mission; 
4,720,230 .pounds is held by British private interests, totaling 
127,950,723 pounds, of which 10,353,341 pounds were exported dur¬ 
ing November, leaving 117,092,332 pounds held in bonded warehouses 
at Now York, Seattle, and New Orleans. England is also rumored to 
have whale oil stored in the Island of Curacao in the Caribbean. 

We should check this and if true handle in the same way as whale 
oil now in this country. It could be transferred in tankers to 
Mobile or Not/ Orleans and reshipped in tank cars where needed. 
There vrere 191,000 long tons on hand in England, August 1341, or 
427,340,000 pounds. There is 3,000 tons weekly usage, making a 64 
week supply on hand.” 






- 17 - 


(2) Take steps necessary to import copra as a source of 
glycerine from areas that are still accessible to us, 
and maximize the production of copra in such areas, ij 


4/ These areas are the British West Indies, the British, Portuguese 
and French possessions in Africa, and, unless the present situation 
in the Pacific makes them inaccessible to us, the British and French 
South Sea Islands. The estimated supply of copra in these areas is 
275j000 tons (63/b coconut oil). 






- 19 - 


*(4) Investigate whether or not this government should prohibit 
the use of soy bean oil and fish oils in the drying field, 
except as they may be used in Fractionation. 2/ 


B. FOREIGN: 

*(1) With a view to conserving shipping space, an investigation 

should be made of the extent to which there are imports from 
Great Britain of materials containing fats and oils. The 
principal materials contemplated are soap (shaving, toilet 
and saddle) and polishes; 

(2) An investigation should be made of the following matters 
concerning West African palm oil and palm kernels: 

(a) To what extent are the British recovering glycerine from 
their imports of test African palm oil and palm kernels, 
and to what extent are these imports going into the 
manufacture of margarine? This information is solicited 
because it would seem that the amount of palm oil and 
palm kernels, if any, going into margarine might better 
be shipped to this country for the recovery of glycerine, 

... .... in .return for lard to be shipped to Great Britain for 

margarine. 


(b) Are the British taking the entire available supply of 

West African palm kernels and oil? It has been suggested 


2/ Mr. Barber, Head of the Fats and Oils Unit of the Protective and 
Technical Coating Section of the WPB, has made the following state¬ 
ment: 

"Soy Bean Oil 

This oil has particular value in the production of certain coat¬ 
ing materials and therefore, its use in this field should not be ab¬ 
solutely restricted. The quantity desired for those purposes would 
be limited but they are important especially in view of the difficulty 
to have available the necessary supplies of the better types of drying 
and semi-drying oils. 

"Fish oil 

This type of oil has an exceptionally important value in the 
protective coatings field, owing to its high iodine•value. There are 
numerous grades of blown and .treated fish oils which arc considered 
absolutely essential in paint, varnish, lacquer, and allied industries. 
Fish oil should also bo used by Fractionators." 




- 20 - 


that at the present British price ceiling it is unprofit¬ 
able to go far inland for palm kernels and palm oil, but. 
that at our price ceiling, which is higher than the British, 
it would be profitable to go farther inland * 

(c) In the event there is a possibility of this country securing 
supplies of palm oil and/or palm kernels from the west coast 
of Africa, the following matters should also be ascertained; 

(i) whether or hot tankers are now carrying petroleum oil 
from this country, the Venezuelan coast or such island 
ports as Aruba and Curacao to refueling points on the 
west coast of Africa. 

(ii) if so, whether or not these tankers are returning empty. 

(iii) if so, whether or not these tankers could be used to 
carry back palm oil and/or palm kernels. 

*(3) Prompt consideration should, be given to the importance of 

Argentine flaxseed in relation to this country's shortage of 
fats and oils. 3/ 


3/ Mr. Parry, Chief of the Edible Oils Section of the ViIPB, has made 
the following significant statement; 

"The untapped source of actual oil is linseed oil in Argentina. They 
now have an exportable surplus of fully 50,000,000 bushels of flaxseed. 
or 1,000,000,000// of oil over and above their own and the United States' 
requirements for paint. 

"It is estimated that over 100,000,000# of linseed oil could be used 
this year in the production of soap and glycerine. The amount that 
could be used would depend upon hydrogenation capacity which is ample 
for this quantity. 

"With the ceiling at 9.71 on Prime Tallow, Linseed oil for glycerine 
purposes is worth about S.75£ f.o.b. point of use, costing about the 
difference to convert it into a tallow substitute. Relaxation of the 
duty, so far as this use is concerned, is advisable so that Argentine 
will be encouraged to produce the oil.and to quote the above price. - 
There is at present no ceiling price on Linseed oil in the United States 

"Russia this month took 22,000,000# refined deodorized Linseed oil for 
edible. I understand Russia uses considerable quantities of linseed oil 
edibly. They will undoubtedly come in for more this year. We should 
have a substantial quantity of the Argentine surplus in this country 




- 21 - 


(4) In the interest cf increasing this country's supply of fats 
and oils, consideration should be given to the feasibility of 
relaxing duties and/or excise taxes of the United States on 
all imported fats and oils which are no?/ subject to import 
duties, taxes or both. 


Footnote 3 Cont'd. 

3/ from which Russia could draw without disrupting our own supply 
position in fats. 

"The United States flaxseed crushing industry is operating at capacity, 
having crushed 45 5 000,000 bushels last, year of domestic and Argentine 
flaxseed. The paint trade is absorbing this output. 

"This Argentine flaxseed over and above our paint requirements, however, 
could be crushed in copra mills which will soon be down when they run 
out of Philippine copra, or in cottonseed oil mills of the South which 
normally begin to close down about March 1, and do not re-open until 
August 1, 1942 when cottonseed begins to move. Flaxseed could be moved 
in tankers or in deep sea tanks or as bulk cargo to New Orleans for 
glycerine, soap and lend-lease the flaxseed and linseed oil v;ould come 
in at lower rates, depending upon the purchase price with the Argentine 
Government who .owns the seed end oil crop. 

"P.S, on Linseed, wo may be able to get Argentina to move this material 
in her own boats. 

"LI NSEED OIL 

"Duty Exci se 

"Flaxseed 32^-0 - 


"Linseed oil 4g$ bu. 


Recommended 

Free for glycerine 
production, and lend 
lease to Russia, No 
change for paint and 
other normal use. 

Free as above." 


In connection with suggestion B (3) ? further comment concerning 
this general problem was made by Mr. Barber, Head of the Fats and Oils 
Unit of the Protective and Technical Coating Section of the WPB°. 








- 22 - 


Footnote 3 Cont’d. 

n I desire to make the following observation: Information received . 
from the Argentine Commercial Secretary. The total quantity of flax¬ 
seed available for the year 1942 would amount to 96 , 000,000 bushels. 
From this must be deducted the quantity required for planting and 
domestic crushing. 

"Let us assume the quantity available for export 

80,000,000 bushels, equivalent to 2,000,000 tons. 

The Protective and Technical Coatings Section of WPB desires to 
import from the Argentine to the United States during the year 1942 
30,000,000 bushels, equivalent to 750,000 tons. 

The Off Shore Shipping Priority Committee suggested the possibility 
of arranging space for 

20,000,000 bushels, equivalent to 500,000 tons. 

However, up to date, they have only approved a quota of 

12,000,000 bushels, equivalent to 300,000 tons from Argentina, 
1,600,000 bushels, equivalent to 40,000 tons from Uruguay. 

In view of the above figures it is necessary to consider the amount 
of additional space that wall be required to bring in Argentine flax¬ 
seed to take ’care of the requirements of the protective coating 
industries. 


"Comparison of the glycerine yield from Babassu kernels and flaxseed. 

% 

"One ten thousand ton steamer carrying Flaxseed from the Argentine 
to the United States could make 5.4 round trips per year— 

54,000 tons of seed would be carried per annum. 
This would be equrvalent to 

18,360 tons of Linseed, oil. 

This would produce 1,836 tons of glycerine. 

"The same steamer operating from the United States to Northern Brazil 
would make 7.7 round trips per year, would carry 
77,000 tons of Babassu kernels 
which would yield 48,510 tons of Babassu oil. 

This would yield 

6,792 tons of glycerine. 

"From the above it v/ould seem advisable to exert every possible 
effort to import from Brazil and Central America such oil-bearing 
seeds and kernels as Babassu and. Cahune and other high lauric acid 
types of material." 


APPENDIX A 


1. Tentative "Survey of the International Fats and 
Oils Situation" (prepared by Mr. R. M. Ualsh and 
Dr. T. Norman of Agriculture; dated February 5, 
1942; 4 pp. of text, 4 of tables.) 

2. "Production Goals for 1942s Oil Crops" (prepared 
in the Department of Agriculture; dated January 9, 
1942; 13 pp. and 3 p. summary.) 















. •... 

. 










UNITED STATES DEPARTMENT 0? AGRICULTURE 
Surplus Marketing Administration 
Washington, D. C. 


February 10, 1942 


To: 

Messrs. Louis H. Bean, Victor Lea, M. I. Hutton 

H. C. Sykes, and Lt. O’Hanlon 

From: 

E. W. Gaumnitz, Associate Administrator 

Subject: 

Survey of the International Fats and Oils Situation 


Herewith is a copy of the Report on the International Fats and 
Oils Situation prepared by Mr, R. M. Walsh and Dr. T. Norman. 
This report is entirely tentative and is by no means an expres 
sion of the views of the Department of Agriculture. 














/ 












\ 

























CONFIDENTIAL 


SURVEY OF THE INTERNATIONAL FATS AND OILS SITUATION 

Summary 

The accompanying balance sheet shows the approximate position of 
the United States, United Kingdom, and Canada with regard to requirements 
for and supplies of fats and oils in the calendar year 1942. Total re¬ 
quirements for the three countries, including some 300 million pounds of 
fats and oils for shipment to the Soviet Union, amount to about 15.5 
billion pounds. Home production is estimated at 11.1 billion pounds. 
Approximately 4.4 billion pounds will need to be imported from surplus- 
producing areas. The supply of raw materials in surplus areas accessible 
to United Nations shipping is in excess of 5 billion pounds in terms of 
oil (excluding the Netherland Indies), but problems of collection and ship 
mcnt probably will make it Impossible to bring in the total imports needed 
particularly in the case of the United States. 

Fats and Oils Balance Sheet for the United States, 

United Kingdom, and Canada, 1942 


Item 

Quantity 


Billion pounds 

Reauiroments 


United States: 


Domestic consumption 

11.3 

'Export to United Kingdom 

.5 

Export to U.S.S.R. 

.3 

Export to Latin America 

.2 

Total, United States 

12^1. .. 

United Kingdom 

2.8 • 

Canada 

-*2— : 

Total, 3 countries 

16.0 

Total, excluding duplication 

15.5 

Homo Production 


United States 

10.3 

United Kingdom 

1/ .3 

Canada 

.5 

Total 

11.1 

Imports needed 


United States 

2.0 

United Kingdom (excluding imports 


from United States) 

2.0 

Canada 

-A 

Total 

4.4 


Canadian figures arc tentative estimates ' 

1/ Includes withdrawals from stock of nearly 0.3 billion pounds of 


whale oil. 




























2 


British_ Requirements 

It is estimated by the British Ministry of Food that a total of 
approximately 2,350 million pounds (oil eouivalent) of oils and fats will 
be consumed in Great Britain in 1942. This estimate is based on the main¬ 
tenance of the current weekly ration of one-half round of oils and fats 
per person and of maintaining soap manufacture at the current hiah level 
in order to extract the maximum amount of glycerin. It may be noted that 
the fat ration for food is quite close to a minimum, having been reduced 
from 10 ounces recently as a result;of the outbreak of war in the Pacific. 

Of the total requirement,- it is.expected that approximately 300 
million pounds will be sup 'lied by drawing on stocks now held in the United 
Kingdom and the United States, chiefly whale oil. This represents a perma¬ 
nent Girinu ion of the- whale oil supply because no more whaling expeditions 
by the British or Norwegians are pro;'c ctrd during the war ceriod. In ad¬ 
dition, a small quantity of butter and lard ’"ill be produced in the United 
Kingdom. 

The bulk of the British requirements will have to be supplied by 
imports. The chief items tc b~ imported ’’ill be about 500,000 lon^ tons 
of palm kernels and copra (oil equivalent, 500 million poinds), about 500 
million pounds of palm oil, 400 million pounds of oil equivalent in poanuts, 
212 million pounds oil equivalent of linseed, 353 million pounds of butter . 
If all of these imports are obtained, only 350 million pounds of lard will 
be required from the United States. But it is likely that a ~ood part of the 
palm oil expected from the Far fast will not be obtained, and an additional 
112 million pounds of lard from the United States may he needed* Finally, 
it may be noted that the- estimated British consumption of 2.8 billion pounds 
of fats and oils in 1942 represents a severe reduction- from the last pre-war 
year, 1938, when -approximate"ly 4 million pounds of fats and oils were im¬ 
ported into or produced in the United Kingdom. (Details as to expected 
imports in 1942* arc sho’”n in the accompanying tables.) 

Two problems which may aris- in connection with the oil supply of 
the United Kingdom should br mentioned. One- is ? possible, interruption 
of shipments of butter from Australasia. The only substitution that seems 
possible is the shipment of butter from th^ United States, or, as an alter¬ 
native, the shipment of margarine or hydrogenated oils for the manufacture, 
of margarine. Likewise, it is possible that there may be an interruption 
of shipping in the South Atlantic. This would threaten imports of palm- 
kernel and palm oils from Africa end of linseed and peanuts from India, 
and would also raise the question of substitution for thesr shipments by 
additional exports from Sou h America and the United States. These possi¬ 
bilities should b borne in mind, though they have not been accounted for 

in our calculations. 

» 

Canadirn Requirements 

Canadian requirements are estimated at approximately 900 million 
pounds on the basis of past experience and on the size of the Canadian 
population. Canadian imports in 1941 wore approximately 400 million pounds 
in terms of oil, and import r*quirrnents for 1942 have been estimated at 



- 3 - 


this ligure. Domestic production is assumed to be 500 million pounds. All 
our calculations in respect to Canada are extremely tentative, but we expect 
shortly to receive a report from Ottawa giving more definite information. 

Russian Requirements 

Information on Russian production and consumption of fats and oils 
is very scanty, but such figures as we have show that of the 1934 com¬ 
mercial production of 800 million pounds of vegetable oil, about one-half 
was produced in areas completely overrun by the Germans or in the area of 
hostilities. Likewise, of the commercial butter output of approximately 
435 million pounds in 1938, about two-fifths was in areas similarly affected. 
Commercial lard and tallow production in Russia seems negligible, the bulk 
apparently being produced on farms. In any case, the invasion must have 
seriously reduced the output of these commodities, but, as an offset, require¬ 
ments have been reduced to the extent that the population has remained in 
occupied territory. 


On the basis of this meager information, it appears likely that the 
deficiency in Russian fats and oils supply is at least of the magnitude of 
500 million pounds, and is possibly much larger. The latest Russian re¬ 
quests for fats and. oils shipments totaled over 300 million pounds for six 
months. However, because of shipping shortages, we do not estimate that 
total shipments to Russia will exceed 300 million pounds for the year, al¬ 
though, if the shipping is available, this quantity may be increased. It 
may be noted that thus far in 1942, one purchase of 22 million pounds of 
linseed oil for Russian account has been made. The purchase of approximate¬ 
ly 12 million pounds of lard and fatbacks is being considered for February* 

United States Requirements 

Consumption of fats and oils in the United States in 1942, if not re¬ 
stricted, is tentatively estimated at 11.3 billion pounds compared with 
approximately 11 billion pounds in 1941* (This is a minimum estimate; con¬ 
sumption actually may be greater.) Export requirements arc placed at 1 
billion pounds, including 500 million pounds of lend-lease exports to the 
United Kingdom, 300 million pounds to the Soviet Union, and 200 million 
pounds of exports and shipments to Latin American republics and United States 
territories. Total requirements for primary fats and oils in 1942 thus are 
estimated at a minimum of 12.3 billion pounds. 

Production from domestic materials, as indicated in table 2, is ex¬ 
pected to be about 10.3 billion pounds. If stocks are to be maintained at 
the January 1 level, at least 2 billion pounds of fats, oils, and oilseeds 
in terms of oil would need to be imported in 1942. The situation in 1943 
probably will be somcvdiat easier, assuming that the production goals for 
oil crops in 1942 are attained. However, it is now realized that the main¬ 
tenance of stocks at the January 1 level (about 2 billion pounds), or at a 
higher level, is necessary to prevent disruption of the processing industry 
due to temporary shortages of working stocks, and also to provide some rcserv 
for unforeseen contingencies. 

Also shown in -table 2 is a schedule of imports that might be made 
in 1942. This schedule has been worked out with duo consideration of 




- 4 - 

ri 

British requirements (table 1) and the available supply of fats in surplus- 
producing areas (table 3). Although approximately 2 billion pounds of fats 
.and oils could be obtained under normal shipping conditions, it is doubtful 
that actual imports vill reach this level. It is uncertain whether supplies 
in the Netherlands Indies and other Pacific areas can successfully be loaded 
and transported, and if the war should be extended into West Africa, ship¬ 
ment from other areas might be seriously endangered. A further difficulty 
arises from the scarcity of shipping space. 

Significant changes in the United States fats and oils situation 
since the preparation of the revised production-goals statement in January 
1942 are as follows: 

1. Greater importance is now attached to the maintenance of stocks 
at levels sufficient to ensure adequate working supplies and to 
provide an emergency reserve. 

2. Russian requests for approximately 300 million pounds of 
fats and oils for lend-lease shipment in the first 6 months . 
of 1942 have been, received. 

3- The Canadians have indicated a need for soybeans or soybean 
oil in an unspecified quantity. 

4. Information furnished by the British Food mission indicates 
that there Fill be few if any African palm kernels available 
to the United States in 1942, and that the quantity of palm 
oil available to.the United States will be small. It is re¬ 
ported that palm-kernel oil is extensively used in soap manu¬ 
facture in the United Kingdom, and that the diversion of 
supplies of palm kernels to the United States would result 
in reduced glycerin output in the United Kingdom. 


The British Government intends to import only a small ouantity of 
copra and no coconut oil, leaving these commodities available for purchase 
by the United States. It is also willing to release a small quantity of 
copra held under contract, provided palm kernels can be obtained in suf¬ 
ficient quantity. In this.connection, the British representatives have 
stated that no licenses arc being granted in British territories for ex¬ 
ports of fats, oils, or oil-bearing . .aterials to the Unite d Stat. s on 
private account. It is desirable that working arrangements be made v.’ith 
the British for obtaining such materials as are available to the United 
States in British possessions. Under existing circumstances, the most 
feasible way to do this is to provide for-Government purchases of all fats, 
oils, and oil-bearing .aterials in foreign countries. Since January 13, 
rapeseed oil, coconut oil, copra, pain oil, and tung oil have been listed 
as "strategic materials", foreign purchases of which may bo made only by 
the Defense Supplies. Corporation. Other import items probably should be 
added to this list. 



-5- 


icible 1. - Requirements of the United Kingdom for fats and oils in 1942 




: Oil or oil 

: 

: Oil or oil 

Item 

Oilseed 

: equivalent 

; Oilseed 

: equivalent 

Imports 

Lone tons 

Lone tons 

1,000 mounds 

1,000 pounds 

e 

• 

Palm kernels (includingcopra) 497,000 

223,650 

1,113,200 

500,976 

Palm oil . 


225,000 

170,150 

94,710 

15,750 

0,050 

150,000 

10,000 


504,000 

400,000 

212,150 

35,280 

18,032 

336,000 

22,400 

67,200 

Peanuts . 

509,000 

207,000 

1,140,160 

642,oS0 

78,400 

51,520 

Linseed . 

Castor seed... 

35,000 

23,000 

Rapeseed ... 

Butter (Australasia)... 

Butter (Eire) . 



Tallow (Australasia) . 

— 

30,000 

mm mm mm 

Oleo stock (Argentina) .... 

— 

30,000 

-- 

67,200 

Lard (United States) . 

— 

156*000 

__ 

349,440 

Total . 

1,351,000 

1,121,310 

3,026,240 

.2,512,678 




Home production and stocks 


1/ 127,000 
20,000 


1/ 284,480 
44.800 

VJhale and fish oils . 

^ „ .. 

Ll| M M 

Butter and other animal fatr 

o 

- * — — 


Total. 


147,000 


329,280 

Grand Total . 

1,351,000 

1,260,310. 

3,026,240 

2,841,958 


Data furnished by British Food Mission, 

January 31, 

1942 



1/ Largely from stocks, including stocks held in the United States. Approximately 
63,500 long tons (142 million pounds) of whale oil would remain for consumption 
in 1943. 










































- 6 - 


Table 2. - Requirements of the United States for fats and oils in 1942 




Domestic 

• 

• 

consumption : 

Export, including 
lend-lease 

Item 


Oilseeds 

:Fats and oils : 
:oil equivalent: 

:Fats and oils 
Oilseeds :oil equivalent 

*• • * • * i 


Mtllioh 

Million 

Million Million 

— 


pounds 

pounds 

pounds pounds 

Home Production 





Butter .............. 



2,350 

. • • 

Lard .. 



1,900 

900 

Edible beef fats. 



230 


Inedible tallow and grea 

ses 

.1,550 


Other.animal fats.... 



15 


Marine animal oils... 



.. 150- ' 


Conn oil... 



..230'‘'* 


Cottonseed oil.. 



1,-300 ' 


Linseed oil.......... 



480 

100 

Olive oil.. 


' 

5 : 


Peanut oil. 



200 


Soybean oil.. 



850 


Tung oil.. 



5 





9,265 

1,000 

Total domestic mater: 

Lai 



Imports 





Tallow (Argentina, 



■* 


Australia)... 



135 


Yi/hale oil (Argentina). 



20 


Cashew shell oil (India) 


2. • - 


Castor beans (Brazil, 





India 


500 

225 


Coconut oil (Ceylon).. 


— 

135 


Copra (Netherlands Indies) 500 

315 


11 (Ceylon)........ 


150 

95 


" (Oceania)....... 


150 

95 


" (East Africa)... 


50 

30 


Cottonseed oil........ 


-. — 

50 


Flaxseed.: 


1,120 

380 


Oiticica oil 


-— 

30 


Palm kernels (Nether- 





lands Indies). 


45 

20 


Babassu and other palm; 





kernels (Brazil)....; 


120 

75 


Palm oil..... 


— 

300 


Rape oil (Argentina)..; 


— 

15 


Tung oil (Burma)..: 


-— 

30 


Total imported material 


1.952 


Grand total.: 



11.217 


Balance from stocks; ; 





Consumption 11 billion ; 





pounds..... • 



—- 


Consumption 11.5 billion 




pounds.. ..: 



300 



Division of Statistical and Historical Research, Bureau of Agricultural Eco**c 

nomics 













































- 7 - 


Table 3.“Exports of principal fats, oils, and oilseeds (in terms of oil) from 
surplus-producing countries accessible to United Nations, average 1934-38. 



• 

available 

1942 






Available to 

Area and commodity 

Average 

Available for: Requirements 

United States 


exports. 

export in 

: of the 

and other 


1934-38 

1942 

: United Kingdom 

countries. 


1,000 lb. 

1,000 lb. 

1,000 lb. 

1^000 lb. 

Netherlands East Indies 





Coconut oil ..... 

28,642 

* 



Copra (63%) . . . „ . 

685,049 


45,000 


Palm kerneis (45%). . 

36,002 




Castor beans (45%). . 

5,684 


* . 


Palm oil . 

376,729 


112,000 


Cottonseed (15%) . . 

489 




Sesame seed (47%) 

3,378 




Peanuts (30-40%) . . 

15,809 


• 


Peanut oil . 

14,839 ... 




Total . 

1,166,621 


157,000 


Oceania 1/ 


_ 



Copra (63%) . 

105,687 




Butter . . 

528,950 


336,000 


Tallow ....... 

27 141,756 

134,400 

67,200 

67,200 

Total . 

776,393 


403,200 


Middle East 3/ 





Coconut oil . 

135,717 




Copra (63%) . 

100,095 




Peanut oil . 

11,376 




Peanuts (30-40%) . . 

475,528 


200,000 


Flaxseed (34%) . . . 

186,214 


212,150 


Castor beans (45%) . 

46,568 


35,280 


Castor oil . 

13,232 




Cottonseed (15%) . . 

1,065 




Rape oil . 

2,621 




Rapeseed (35%) . . . 

23,665 


18,032 


Sesame oil . 

1,907 




Sesame seed (47%) . . 

8,010 




Total . 

1,005,998 


465,462 


Africa 4 / 





Castor beans (45%) . 

4,851 




Castor oil . 

278 




Coconut oil ..... 

1,831 




Copra (63%) . 

111,165 




Palm kernels (45%) . 

583,575 


455,976 


Palm oil . 

487,175 


392,000 


Peanuts (30-40%) . . 

316,356 




Peanut oil . 

650 




Sesame seed (47%) . . 

41,788 
































































- 8 - 


Table 3.- Exports of principal fats, oils, and oilseeds (in terms of*oil) from 
surplus-producing countries assessible to United Nations, average 1934-33. 

available 1942 - continued. 


Area and commodity 

« 

Average : 

exports, ; 
1934-38 : 

Available for 
export in 

2.942 

: Requirements 
of the 

: United Kingdom 

:Available to 
:United States 
: and other 
: countries 


1.000 lb. 

1,000 lb. 

1.000 lb. 

1.000 lb. 

Africa (cont*d) 





Sesame oil.. 

1,550 




Sunflower seed (25%) . 

480 




Cottonseed (15%) . . .179,340 




Cottonseed oil .... 

21.338 




Total . 

:1,750,377 


1,047,976 


Latin America 5/ 





Coconut oil . 

512 


. 


Copra (63%) . 

11,424 


• 


Babassu kernels (63%) 

: 25,873 




Other palm kernels 





(45$) ....... 

3,128 


. 


Castor beans (45%) . . 

93,970 




Castor oil.. 

492 




Cottonseed (15%) . . . 

38,952 




Cottonseed oil .... 

41,345 

50,000 


50,000 

Flaxseed (34%) . . . . 

: 1,210,224 




Rapeseed (35%) . . . . 

9,120 

15,000 


15,000 

Sunflower seed (25%) . 

: 2,083 




Butter . 

: 18,477 


. 


Lard ... . 

6/ 33,730 


. • 


Tallow . 

: 2/ 247.357 

138.840 

67.200 

71.640 

Total . 

: l,736o 507 


67.200 


Grand Total 

6,435,896 


2 ,140 ,838 



Division of Statistical and Historical Research, Bureau of Agricultural Economics. 
Exports 1934-38 from International Yearbook of Agricultural Statistics and Inter- 
national Institute of Agriculture. * • 

1/ Includes Australia, Fiji Islands, French Oceania, New Caledonia, New Hebrides, 
New Zealand, and Western Samoa, 

2/ Average 1924-28, 

3/ Includes Ceylon, India, and Portuguese India. . , . . 

Lj Includes Angela, Anglo-Egyptian Sudan, Belgian Congo, British Cameroons, Cape 
Verde Islands, Egypt, French Cameroons, French Equatorial Africa, French Togoland 
Gambia, Gold Coast, Kenya and Uganda, Mauritius, Mozambique, Nigeris, Portuguese 
Guinea, Euanda and Urundi, Sao Teme and Principe Islands, Seychalles Islands, 
Sierre Leone, Southern Rhodesia, Tanganykia, Tonga, Union of South Africa,Zanzibar 
j>/ Includes Argentina, Brazil, British Guiana, British Honduras, British West 
Indies, Ecuador, Haiti, Paraguay, Peru, Irinidad, and Tobago,Uruguay,and Venezuela 
6/ Average 1934-36, 






























PRODUCTION GOALS 1942 - OIL CROPS 

Sunmry 


1 - 9-42 


The United Str.tes faces n deficicnoy in 1942-43 of up to 1,500 nillion 
pounds in the supply of fats find oils, even assuming that present production 

go' ls ore attained. In order thrt our stocks not be unduly depleted r.nd that 

v r e may h^ve an adequate supply for our o v /n needs and for lend-lease as well 
"s for unforeseen contingencies, it is recormended th't: 

1. The acreage goal for soybeans be increased from 7 to 9 nillion acres, 

2. The acreage goal for flaxseed be increased from 3,367,000 acres 

to 4,000,000 acres. 

3. The acreage of castor beans for oil be increased from zero to 
50,000 acres and for seed from 1,000 r 'cres to 15,000 acres. 

4. The production of lard, tailor, and greases be stepped up 400 
to 500 million pounds by changing the relationship of prices of 
these products to meat prices. 

5. The production of corn oil and miscellaneous byproduct pit and 
seed oils be increased if possible (90 to 100 million pounds of 
oil might be obtained from these sources assuming an all out 
production effort is made and that critical materials can be 
made available.) 

6 . No change is recommended in the present peanut acreage goal, 
but it is extremely desirable to go as much beyond this goal 

as possible. To achieve such increases, it is recommended that 
a concerted effort be made by the appropriate agencies to get 
further acreage increases, particularly in those counties and 
areas inhere peanuts can be grown but arc not now grown exten¬ 
sively. 

The proposed increases in the acreage goals (assuming the cotton acreage 
will reach 25 million acres) would result in an increase in total oil pro¬ 
duction of ^.bout 460 million pounds above present go-°ls (225 million pounds 
of soybean oil, 100 million pounds of linseed oil, 10 to 12 nillion pounds 
of castor oil and 125 million pounds of cottonseed oil). The increases 
proposed for lard, tallow, and greases would add another 400 to 500 million 
pounds. This would still leave 500 to 600 million pounds to be obtained 
from other sources such as corn oil and other byproduct oils and from 
increased production of peanuts beyond the present recommended goal. It 
is probable that a substantial production of whale oil could be obtained 
if the present burdensome excise tax on whale oil produced in American 
factory ships from whales caught by foreign labor were removed or suspended. 




Summary - 2 

To achieve the above increases would necessitate price supporting 
measures for soybeans, peanuts, castor beans and possibly flaxseed. It 
also would necessitate charges in present price ceilings for linseed oil, 
lard, tallow, and greases and probably for peanut, soybean, cottonseed, 
and castor oils. In addition, to these steps it would be necessary to 
provide processing facilities for 20 million bushels of soybeans, degermin 
ator or solvent extraction facilities for corn and other byproduct oil 
seeds; as we11 as hulling machines and storage space for some 34 million 
pounds of caster beans. 

In lieu of these measures, rationing of fats and oils will be 
necessary, It may be necessary to regulate the use of some fats and 
oils in any case. It probably would be desirable to divert all available 
supplies of coconut, babassu, and other palm kernel oils to the production 
of soap and glycerine, possibly with minor exceptions for other essential 
industrial products such as plastics. A Government reserve of palm oil 
should be established from existing commercial supplies sufficient to meet 
present and prospective needs of the tin and tern plant industry. If 
consumer rationing is undertaken, it is suggested th:.t it be initiated 
in soap and in paints and varnishes for'non-essential uses. 







TABLE I. - GOALS FOR 1942: ESTIMATED OR DISAPPEARANCE, FOREIGN TRADE, RESERVES OR CARRYOVERS, AND 

ACREAGES OR NUMBERS FOR 1942 




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V 













PRODUCTION GOALS FOR 1942- OIL CROPS 


I. Produc t ion goals for 1942 

Recommended acreage and production goals for the principal oil crops in 
1942, with comparative data, are shown in Table 1. Not all the fats and oils 
that will be needed can be obtained from these crops, and it probably will be 
necessary to resort to other sources for obtaining additional supplies of 
fats and oils. Recommendations for further action are contained in Section 
III (2). 


Table 1. - Production Goals for 1942: Oil Crops 


Commodity 

Acreage 

Unit 

Production 

Av. 

1936- 

40 

1941 

1942 goal 

Av. : :1942 coal 

Orig¬ 

inal 

Recom¬ 

mended 

1936-« 1941:0rig-:Recom- 
40 : :inal smended 

Peanuts picked and threshed 
Soybeans harvested for beans 
Flaxseed seeded 

Castor beans planted: 

For oil 

For seed 

1,743 

3,396 

2,145 

1,000 acres 

3,500 

9,000 

4,000 

50 

15 

lb. 

bu. 

bu. 

lb. 

lb. 

Million units 

1,964 

5,255 

3,367 

3,500 

7,000 

3,367 

1/ 

1,342: 1,558:2,625: 2,625 
6k 107: 126 : 153 

14: 31: 29: 34 

0 mo 

m 00 

- : - : 1/: 37 

- : 2/: 1/i 9 

• • • 

O 0 0 


u No goal established. 

2/ Less than 500,000 pounds. 


II. Relation of 1942 Goals to Needs 

The recommended acreage goals may be best understood if related to the 
entire fats and oils picture. The following balance sheet shov/s the situa¬ 
tion with respect to probable requirements for fats and oils for domestic 
consumption and export, including lend-lease, in relation to probable sup¬ 
plies, assuming, first, that the acreage goals sot up last September are 
attained, and, second, that the acreage and other goals now recommended are 
attained. The new goals would yield about 225 million pounds more soybean 
oil, 100 million pounds more linseed oil, and 10 to 12 million pounds more 
castor oil than the goals established in September. About 125 million pounds 
of cottonseed oil 'would bo added if cotton acreage is increased to 25 million 
acres. In addition, 400-500 million pounds more lard, tallow, and grease migfr 
be obtained by changing the relationship of prices for these commodities to 
meat prices, and that in an "all-out u program a further 90-100 million pounds 
of corn oil and other byproduct vegetable oils could be obtained by concerted 
effort to provide necessary processing facilities. Peanut production probably 
could be increased considerably beyond the present goal if steps were taken to 
stimulate production in adapted areas whore peanuts are not now extensively 
grown. 


























I 


i 





















It has not boon possible to make a reliable breakdown of the consump¬ 
tion figures for "regular" and "supplemental low-incone" needs. Nor is a 
breakdown shown for "normal" and "reserve" stocks; total stocks are likely 
to be below normal even if the recommended goals arc reached. 

Table 2. - Estimated Requirements for and Supplies of Primary Fats and 
Oils, Crude Basis, Average 1936-40, Tear Beginning July 1940, 
1941, and 1942. 



Average 


Yean 

? beginning July 


calendar 



1942-43 

Item 

year 

1936-40 

1940-41 

1941-42 

Original 

goal 

Recommended 

goal 


Bil.lb. 

Bil.lb 

Bil.lb. 

Bil.lb. 

Bil.lb 

Domestic disappearances 

Total 

9.4 

10.5 

11.0 

11.5 

11.5 

Per capita (pounds) 

(72) 

( 79 ) 

(82) 

(86) 

(86) 

Exports: 






Lend-lease 

0 

0 

.5 

.8 

.8 

Commercial 

.4 

. . .4 

.2 

.2 

.2 

Total requirements 

9.8 

10.9 

11.7 

12.5 

12.5 

Production from domestic 
materials 

7.8 

9.1 

9.6 . 

1 / 10.4 

11.4 

Imports 

2.1 

1.6 

2 / 1.4 

2/ l.Q 

1.0 

Production plus imports 

9.9 

10.7 

11.0 

11.4 

12.4 

Factory stocks, June 30 

2.3 

0 

2.3 

. 0 

1.6. 

.5 : 

1.5 

Additional production needed 
to maintain stocks at; 
Normal levels(2.0 bil. lbs) 
Minimum level(1.5 bil.lbs.) 


• 

• 

• 

/ . , 1 , 

1.5 

1.0 

.5 

0 


1 / Inspected lard production is estimated at 33 pounds per hog; non-inspccted 
lard at 31 pounds per hog. Detailed production estimates are shown in 


Table 3. . 

2/ Assumes that imports from- the Pacific will be cut off from December 7, 1941 
for an indefinite period, but that imports from, other areas will be about 
20 percent above the July-October 1941 rate. Imports July-October averaged 
172 million pounds per month, of which approximately 105 million pounds 
originated in the Pacific area and 67 million pounds outside the Pacific 
area. Assumed imports thus would be about 80 million pounds per month, 
obtained largely from South America. 

2/ Includes oil equivalent of imported oilseeds, except flaxseed, 1936-40 
figure is for December 31. 






























Table 3. - Estimated Production of Fats and Crude Oils From Domestic 
Materials, Years beginning July 1940-42. 



. 0 
o 


0 

0 


0 

0 

-1 /:Possible 

Production 

Item, 

• 

o 

1940-41 

e 

0 

1942-42 

© 

0 

1942-43' 

“ / sunder recommended 


• 

e 


0 

0 


0 

0 


:goals - 

1942-43 . 


o 

o 

Lai. lb. 

0 

0 

Mil. lb. 

0 

0 

1 

Mil. lb 

. : Mil. 

lb. 

Butters Factory . 

• o 

• 

1,881 

0 

0 

0 


0 

# 

0 


0 

0 

0 


Farm. 

: 

414 

e 

e 

mm 

© 


© 

0 

— 

. Total, butter. 

; 

2,295 

0 

0 

2,335 

0 

0 

2.370 

0 

2.370 

Lard: Inspected . .•.... 


1,489 

0 

0 

1,600 

0 

0 

1,950 

0 

• 

Other.. 

• 

241 

0 

0 

840 

0 

0 

900 

© 

0 


Total lard.. 

0 

2,230 

0 

A 

2,440 

0 

0 

2,850 

0 , 

0 % 

3,150 .. 

Bcatsfoot oil . . 

9 

4 

0 

5 

0 

0 

5 

0 

0 

5 

Oleo oil ............. 

n 

80 

0 

O 

90 

0 

0 

' 90 

0 

0 

90 

0T eostearine . 

0 

41 

O 

O 

50 

0 

0 

50 

0 

0 

50 

Tailor/, edible . 

e 

79 

O 

90 

0 

0 

90 

0 

90 

Tallow, inedible, and 

• 

0 


O 


0 

0 


O 

0 


greases: Factory ... 

: 

1,197 

0 

O 

— 

0 

0 

- 

0 

O 

- 

Other 

* 

o 

223 

p 

• 

0 

— 

O 

0 

- 

Total tailor/ and 

0 

o 


O 

9 


0 

0 


0 

O 


grease. •«...... 

o 

• • 9 • • ° 

1,420 

O 

O 

1.500 

0 

0 

1,550 

O 

O 

1,700 

Wool grease .. 

o 

A 

. 14 

0 

9 

14 

0 

0 

14 

O 

O 

14 

Fish-liver oil . 

o 

o 

2 

a 

0 

2 

0 

0 

0 

2 

O 

O 

2 

Fish oil . 

0 

162 

O 

0 

180 

© 

100 

O 

100 

Whale oil . 


1 

0 

0 

.1 

0 

0 

1 

0 

1 

Total animal . 

9 

o 

6,328 

0 

0 

9 

O 

6,707 

© 

0 

0 

e 

7,122 

O 

O 

0 

7,572 

Castor- oil ...... ...... 

0 

o 

9 

« 

9 

0 

O 

0 

0 

0 / ^ 

0 

0 

0 

0 / 10 

9 

O 

O 

10 

Corn oil .. 

0 

A 

170 

O 

C 

220 

0 

0 

^240 

0 

O 

290 

Cottonseed oil.. . 

A 

o 

1,413 

« 

O 

1,250 

0 

0 

1,250 

O 

O 

1,375 

Linseed oil . 

© 

9 

494 

O 

560 

, 9 

0 

510 

0 

610 

Olivo oil .. .. 

O 

o 

11 

O 

O 

5 

0 

0 

10 

0 

O 

10 

Peanut oil .. 

0 

9 

172 

0 

9 

85 

0 

0 

400 

0 

O 

400 / 

Soybean oil .. 

O 

o 

552 

r 

a 

765 

0 

900 

O 

0 

1,125 

Tung oil .. 

o 

5 

» 

5 

0 

0 

5 

O 

O 

5 

Miscellaneous oil g ... 

0 

o 

2 

0 

O 

2 

• 0 

0 

2 

r* 

0 

_ £0 


Total vegetable . 
Total fats and oils... 


2,819 


2,392 


3,327 


3,875 / 


9,147 


,599 


10,449 


11,447 / 


Division of Statistical and Historical Research, Bureau of Agricultural 
Economics. Data for 1940-41 arc based on reports of the Bureau of the Census, 
except for factory butter, Agricultural Marketing Service, and inspected lard, 
Bureau of Animal Industry. Figures for ''farm” butter, "other" lard, and 
"other"■tallow and greases are estimates. 


1/ Assuming average crop yields and attainment of original production goals. 
2/ Docs not include corn oil that might bo produced from corn germs or dried 
grain obtained .from the distillation industry. 


















































































































